The company notes that it changed the settlement currency for all Russian divisions from the US dollar to the Russian ruble from January 1, 2023. As a result of a decrease in the volume of mining and gold production, the savings in cash operating costs in rubles amounted to 13%, which was offset by the strengthening of the ruble against the US dollar in 1Q 2023 by 16%. Auriant notes that the strong exchange rate of the ruble could negatively affect the company's margins.
Revenue from sales of the precious metal in the reporting period decreased by 48% to $8.9 million on the back of lower sales volumes. The volume of gold sold amounted to 148 kg with 139 kg mined. The average selling price in the first quarter was $1,882 per ounce. Cost of sales increased by 6% to $8.94 million.
The cost of a gold ounce increased in the reporting period as a result of a decrease in production volumes and overburden depreciation carried out in 2022. As a result, the average cash cost per ounce produced was $1,429 per ounce in the first quarter of 2023 compared to $688 per ounce in the same period in 2022.
The company's net loss amounted to $8.4 million compared to $4.7 million in net profit in the same period last year. EBITDA is negative - $0.2 million versus $9.9 million in the first quarter of 2022. EBITDA margin was -2% (vs. 57% a year earlier).
Reference
Auriant Mining is a Swedish company focused on exploration and gold mining in Russia. The company's asset portfolio includes operating enterprises Tardan in Tuva and Solkokon in Trans-Baikal Territory. Auriant shares are traded on the Swedish Nasdaq First North Premier Growth Market.